Airbnb, the startup that helps you rent your home to strangers, is raising a round of funding of $100 million or more at a $1 billion valuation, led by Andreessen Horowitz and with Digital Sky Technologies participating, sources tell TechCrunch's Sarah Lacy.
They're probably going to need the money for customer acquisition. Airbnb is in the highly competitive travel space, where it's very expensive to acquire customers. From Paris, Airbnb has the top Google ad for "vacation rental", which has to be a pretty expensive click.
Airbnb is huge, and on a tear. It's basically eBay for space. It was an under the radar success, with many people predicting its demise and many great investors (including Union Square Ventures' Fred Wilson) turning down the fledgling startup.
And yet, here they are. Kudos, guys.
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